The Impact of Sanctions against Russia on the Economic Situation in Turkey

The article "The Impact of Sanctions against Russia on the Economic Situation in Turkey" by Yulia Kudryashova, dated July 26, 2022, delves into the complex interdependencies between the Turkish and Russian economies. It highlights how economic and trade relations are pivotal in shaping Russian-Turkish relations. These include the presence of Turkish companies in Russia, significant expenditures by Russian tourists in Turkey, cooperation in the Syrian conflict, and Turkey's acquisition of Russian S-400 anti-missile systems. Despite these close ties, Turkey is actively seeking ways to reduce its dependence on Russian energy resources.

The ongoing conflict in Ukraine has notably shifted Turkey's focus in several sectors, including tourism, energy, food, exports, and real estate. The withdrawal of global brands from Russia presents new trade opportunities between Turkey and Russia, with Turkey poised to expand its market presence in Russia. However, the sanctions against Russia have had a ripple effect, causing a surge in global energy prices. This, in turn, has spurred inflation in Turkey, compelling the Central Bank to expend a significant portion of its reserves in an effort to stabilize the lira.

Additionally, Turkey is grappling with soaring food prices, exacerbated by its reliance on wheat, corn, and sunflower oil imports from Russia and Ukraine. This situation has led to a decline in real wages, deepening financial crisis, and rising unemployment in Turkey. The article also points out the potential for Russia to retaliate with its own economic sanctions against Turkey, including cutting off tourism and agricultural imports, should Ankara provide military support to Kyiv. This intricate web of economic interactions underscores the delicate balance Turkey must maintain in its relations with Russia amidst broader geopolitical tensions.